Private Equity Firm Acquires MSP: Siris Capital Buys TPx, Seeks CEO
Private equity firm Siris Capital Group has acquired TPx Communications and is now seeking a successor CEO to run the managed IT services provider (MSP). Siris announced additional TPx Communications executive updates — including a new CFO, chief revenue officer (CRO) and channel chief — and emphasized the MSP’s continued focus on channel partners.
The deal was first announced in August 2019 but wasn’t finalized until now because of the regulatory review process, which has now been completed, Dave Zahn, senior VP of marketing for TPx, tells ChannelE2E.
This is M&A deal Number 108 that ChannelE2E has covered so far in 2020. See the complete M&A deal list here.
Siris Capital Acquires TPx: Executive Changes
TPx is an MSP focused on unified communications, contact center, managed security, managed WAN, other managed IT services and network connectivity solutions. The company serves roughly 25,000 enterprises across more than 50,000 locations across the United States.
In conjunction with the deal, key executive changes include:
- CEO Retires: CEO and Chairman Richard A. Jalkut is retiring.
- Interim CEO named: Siris Executive Partner Joseph A. Cozzolino will serve as interim CEO and executive chairman of the board of TPx. Cozzolino, a Cisco Systems and Motorola Mobility veteran, will lead the process to identify and select a permanent CEO.
- New CFO: Brent Novak succeeds CFO Tim Medina, who is stepping down to pursue other interests.
- New CRO: Greg Daily moves into the newly created role of chief revenue officer.
- Channel Leadership: Channel Chief Ken Bisnoff is leaving the company to pursue new opportunities. Jim Delis will assume expanded responsibility as senior VP in charge of TPx’s partner channel across all regions.
In a prepared statement about the deal, Cozzolino said:
“As part of the Siris family of companies, TPx will have the enhanced support and resources it needs to lead in the fast-growing addressable market for UCaaS, CCaaS, and managed IT services, including security. I know Siris is excited and eager to help accelerate TPx’s growth, building on its industry-leading customer satisfaction, tremendous range of award-winning products, and its large, diversified customer base. As Executive Chairman and Interim CEO, I look forward to supporting the company’s continued growth and helping the team achieve its strategic objectives.”
Cozzolino also thanked former TPx CEO Richard A. Jalkut for his service to the company. However, Jalkut was not quoted in the announcement.
Siris Capital Acquires TPx: Channel Commitment
In a prepared statement about TPx’s channel commitment under new ownership, Daily said:
“The Channel is tremendously important to TPx. It accounts for more than half of our sales and having Jim [Delis] take complete responsibility for our agents ensures that we can bring enhanced focus, accountability, and resources to those all-important relationships.”
Added Cozzolino about the channel focus:
“TPx is opening up a new chapter in its long and successful narrative of growth and partnership, and we’re delighted to have Jim [Delis] expanding the great relationships he has across the channel. He is a key member of my leadership team. Together, we’re committed to quickly bringing additional resources and improved systems and processes to the channel to enable our partners’ and customers’ success.”
Delis has led TPx’s national Channel development and Eastern sales organizations for more than a year. Earlier, he was senior VP, partner channel at Time Warner Cable Business Class.
Siris Capital Acquires TPx: Key M&A Deal Advisors
Multiple third-party organizations and advisors helped to piece together the deal. Key organizations to note include:
- Sidley Austin LLP served as corporate counsel, Kirkland & Ellis LLP served as financing counsel and PJT Partners served as lead financial advisor to Siris.
- Macquarie Capital also served as a financial advisor to Siris.
- Evercore served as lead financial advisor to TPx.
- Q Advisors also served as a financial and strategic advisor to TPx, and Gibson, Dunn & Crutcher LLP served as TPx’s legal counsel.
- Morgan Lewis and Bockius served as TPx’s regulatory counsel.